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New Member
posted Jun 3, 2019 12:53:48 PM

Where do I put my sale of a flipped home if I don't have an official business, LLC, etc?

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3 Replies
Expert Alumni
Jun 3, 2019 12:53:49 PM

The sale of a flipped home is reported as self-employed income on your personal tax return on Schedule C.

The sale price is reported as income. The cost of the home plus improvements you have paid is reported as Cost of Goods sold. You can also deduct any other related expenses such as property taxes, interest, advertising, brokers' commissions, etc...

New Member
Jun 3, 2019 12:53:50 PM

But then when do you report this is a capital gain asset versus putting it as self-employment on Schedule C?

Expert Alumni
Jun 3, 2019 12:53:51 PM

When you flip a house, the profit/loss is taxed as ordinary income and is reported on Schedule C as a business. Capital gains/losses only apply to rental homes or homes held for investment.
<a rel="nofollow" target="_blank" href="https://fitsmallbusiness.com/taxes-on-flipping-houses/">https://fitsmallbusiness.com/taxes-on-flipping-houses/</a>
Hope that this helps!